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Apr 01, 2023

VF Corp Q4 2023 Earnings Report

VF Corporation reported fourth quarter revenue and earnings in line with guidance and declared dividend of $0.30 per share.

Key Takeaways

VF Corporation's Q4'FY23 revenue was $2.7 billion, a decrease of 3% (flat in constant dollars). The Earnings per share (EPS) was $(0.55), and Adjusted EPS was $0.17.

Revenue decreased 3% (flat in constant dollars) to $2.7 billion.

Earnings (loss) per share was $(0.55) on a reported basis.

Adjusted earnings per share decreased 62% to $0.17.

The North Face® revenue up 12% (up 16% in constant dollars).

Total Revenue
$2.74B
Previous year: $2.82B
-3.0%
EPS
$0.17
Previous year: $0.45
-62.2%
Gross Margin
49.6%
Gross Profit
$1.36B
Previous year: $1.47B
-7.4%
Cash and Equivalents
$815M
Previous year: $1.28B
-36.1%
Total Assets
$14B
Previous year: $13.3B
+4.9%

VF Corp

VF Corp

VF Corp Revenue by Geographic Location

Forward Guidance

VF Corporation expects total revenue to be flat to up slightly in constant dollars. Gross margin is expected to be up at least 100 basis points, and EPS is projected to be between $2.05 and $2.25.

Positive Outlook

  • Total VF revenue flat to up slightly in constant dollars
  • Gross margin up at least 100 basis points
  • Operating margin expansion
  • Higher gross margins supporting modest increases in SG&A
  • Free cash flow of about $900 million

Challenges Ahead

  • Q1'FY24 revenue down high-single digits in constant dollars reflecting a challenging US Wholesale environment
  • EPS of $2.05 to $2.25, including more than $(0.30) from the adverse effect of higher interest
  • Unfavorable foreign currency
  • Assumed normalized incentive compensation
  • Higher tax rate

Revenue & Expenses

Visualization of income flow from segment revenue to net income